Global Digital Payment Market
was valued at US$ 58.3 Bn. in 2020 and is expected to reach US$ 200.5 Bn. by 2027, at a CAGR of 19.3% during a forecast period.
Global Digital Payment Market Overview:
The global digital payment market was valued at US$ 58.3 Bn. in 2020. The rising adoption rate of smartphones, increased e-commerce
sales, and enhanced internet penetration internationally are projected to benefit the industry. Governments all over the world are taking steps to digitize payments. In many countries around the world, this is fostering economic growth and benefiting end-users. For example, Mexico's central bank announced the launch of CoDi, a smartphone payment system, in February 2019 to minimize cash transactions in the country.
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The report has covered the market trends from 2016 to forecast the market through 2027. 2020 is considered a base year. Special attention is given to 2020 and effect of lockdown on the demand and supply, and also the impact of lockdown for next two years on the market. Some companies have done well in lockdown also and specific strategic analysis of those companies is done in the report.
Global Digital Payment Market Dynamics:
Rise in the adoption of contactless payments: Contactless payments let customers avoid lines and hassles while also providing better benefits for shops in the form of increased revenue. According to First Data, contactless transactions are faster than both cash and traditional card purchases. Shorter lines, more revenue, and higher customer satisfaction result from the reduced transaction time. During peak hours, fewer staff is required due to greater throughput at each point of sale (PoS). According to Thales Group, by 2023, there will be 2.7 billion contactless cards in circulation, with usage growing in nations including the United States, Brazil, and South Asia. The amount of transactions made with contactless cards is predicted to rise in countries including the United Kingdom, Canada, Europe, and Australia. Tap and pay now accounts for more than 40% of all card transactions in the UK. Lack of global standards for cross-border payments: Year over year (YoY), cross-border trade has increased as more businesses purchase goods and services from around the world. However, digital payment vendors are unable to take advantage of this opportunity due to a lack of global payment systems that are simple to use, a lack of global standards, and varying government restrictions in different nations. Distinct countries have different payment and data storage requirements. Cross-border
payments are inefficient as a result of these restrictions and compliances. Furthermore, the domestic payment infrastructure is not set up to handle cross-border transactions. Several countries have developed high- and low-value payment systems based on their own communication and security standards. However, as payment systems evolve independently, there is a greater demand for standardisation and automation across inter-bank and intra-bank networks between countries. This has a negative impact on banks and enterprises, and it frequently necessitates human data collection and restoration. Intra-bank transactions allow major banks with subsidiaries and branches to send funds to destination nations.
Global Digital Payment Market segment analysis: The global digital payment market is segmented into solution, mode of payment, deployment, enterprise size, and end-user. Based on solution,
in 2020, the payment processing segment dominated the market, accounting for about 25.0 % of worldwide revenue. Retailers are adopting payment processing solutions to provide customers with flawless checkout experiences as their preference for online shopping grows around the world. Fortifying their market presence, players providing payment processing solutions are working on mergers and acquisitions as well as collaborations. PayU, for example, purchased Red Dot Payment, a payment solution provider, in July 2019 to extend its position in Singapore. Based on mode of payment,
in 2020, the point-of-sale segment dominated the market, accounting for more than 52.0 % of global revenue. The systems used by retail businesses to conduct transactions are known as point of sales. Fast checkout choices, a tailored customer experience, and different payment options are all advantages of using a point of sale. Several merchants and restaurants use the point-of-sale payment method to improve their customers' payment experiences. For example, Grubhub, an online food ordering service, announced a partnership with ParTech Inc., a developer of point-of-sale systems, in January 2020, to integrate point-of-sale technologies into its food ordering process. Over the projected period, the net banking segment is expected to grow at the fastest rate. Net banking's advantages, such as increased time efficiency, simplicity of banking, and activity tracking, are among the primary factors driving the segment's rise. In recent days, internet banking customers have increased in a number of countries throughout the world. One of the factors fueling the segment's growth is rising internet penetration. According to eMarketer, in 2020, nearly 80% of internet users in the United States will be able to access their bank accounts digitally. Based on deployment,
in 2020, the on-premise segment dominated the market, accounting for about 65.0 % of worldwide revenue. Digital payment solutions that are deployed on-premise give businesses complete control over their apps and systems, which can be easily controlled by their IT team. Organizations also utilize on-premise digital payment solutions to protect their apps and systems from harmful threats. Microsoft, for example, announced a partnership with ACI Worldwide in November 2019. ACI World wide’s on-premises customers benefited from the collaboration, which included lower long-term capital expenditure and greater security. Based on enterprise size,
in 2020, the big enterprises segment led the market, accounting for over 60.0 % of worldwide revenue. Large retail businesses have a lot of foot traffic, which necessitates the use of digital payment systems for quick checkouts. Customers can enjoy a more convenient checkout process with digital payment systems that support a variety of digital payment methods such as smart banking cards, point of sale, and e-wallets. At the same time, businesses are working on providing customers with innovative payment options. For example, in October 2020, Klarna announced a partnership with after pay to offer online clients Buy Now Pay Later services. Based on end-user,
in 2020, the BFSI sector dominated the market, accounting for more than 23.0 % of global revenue. Over the projection period, an increase in remittances to low- and middle-income nations is likely to be one of the primary factors driving new market growth prospects. In order to compete with digital payment solution providers such as Google, Amazon, and Facebook, banks are also enhancing their capabilities. In June 2019, Bank of America, for example, launched a digital debit card to make life easier for its clients.
Global Digital Payment Market Regional Insight:
The North America market held the largest share with size of USD 16.8 billion in 2020. The major contribution for the market growth is the explosion of the mobile commerce industry, coupled with the wide acceptance of digital and cashless transactions. Additionally the existence of a large number of digital payment solution providers in the region is also one of the factors driving the market. In countries like U.S. and Canada, various factors such as strong network infrastructure and reliable broadband providers and customer preference for cashless payments are extensively contributing to the country’s high growth rate of cashless transactions supplementing the market growth at CAGR of 6.34%.
The objective of the report is to present a comprehensive analysis of the global Digital Payment market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The report also helps in understanding the global Digital Payment market dynamics, structure by analyzing the market segments and projects the global Digital Payment market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Digital Payment market make the report investor’s guide.
Global Digital Payment Market, by Region
• North America • Europe • Asia Pacific • Middle East and Africa • South America
Global Digital Payment Market Key Players
• Total System Services, Inc. • Wirecard AG • Novetti Group Limited • PayPal Holdings Inc. • ACI Worldwide Inc.
• Adyen N.V. • Aurus • Aliant Payments
• Alipay • Apple Pay • Dwolla • FattMerchant • FIS
• Fiserv • Global Payments • Intuit • JPMorgan Chase • Mastercard • PayPal • Paysafe
• PayTrace • PayU • Spreedly • Square • Stripe • Visa • WEX • Worldline • 2Checkout
Frequently Asked Questions: 1. Which region has the largest share in Global Digital Payment Market? Ans:
North America region holds the highest share in 2020. 2. What is the growth rate of Global Digital Payment Market? Ans:
The Global Digital Payment Market is growing at a CAGR of 19.3 % during forecasting period 2021-2027. 3. What segments are covered in Global Digital Payment market? Ans:
Global Digital Payment Market is segmented into solution, mode of payment, deployment, enterprise size, end-user and region. 4. Who are the key players in Global Digital Payment market? Ans:
The important key players in the Global Digital Payment Market are – Total System Services, Inc.;, Wirecard AG;, Novetti Group Limited;, PayPal Holdings Inc.;, ACI Worldwide Inc.;, Adyen N.V., Aurus, Aliant Payments, Alipay, Apple Pay, Dwolla, FattMerchant, FIS, Fiserv, Global Payments. 5.What is the study period of this market? Ans:
The Global Digital Payment Market is studied from 2020 to 2027.